Key Takeaways
- Midterms may favor Democrats, potentially limiting Trump administration’s agenda.
- Defense spending uncertainty looms as FY26 budget negotiations begin.
- Congress faces challenges in passing a defense appropriations bill for FY26.
As the US midterm elections approach, concerns about congressional turmoil and defense spending uncertainty are growing. With Democrats poised to gain control of the House, the Trump administration’s ability to enact its agenda without opposition is uncertain. The expiration of the current continuing resolution on January 30 will test lawmakers’ ability to pass a defense appropriations bill for FY26, with implications for FY27 projections.